Why Bombay Burmah Trading shares ralled 13%? Supreme Court recalls ₹4,655 crore lease rent observations

Shares of The Bombay Burmah Trading Corporation rallied on Thursday after the Supreme Court recalled observations relating to an alleged ₹4,655 crore lease rent liability concerning the company’s erstwhile tea estate in Singampatti, Tamil Nadu.

The stock closed 13 per cent higher at ₹1,613.60 after hitting an intraday high of ₹1,639 on the NSE from the previous close of ₹1,426.20.

Bombay Burmah Trading Corporation shares rally

The company said in a stock exchange filing that the Supreme Court, through its order dated August 19, 2026, allowed its interlocutory application and recalled the observations contained in paragraph 59 of its May 29, 2026 order to the extent they referred to the company’s lease rent liability.

The company said the matter relates to ongoing judicial proceedings concerning its erstwhile tea estate in Singampatti, Tamil Nadu.

According to the company, while the civil appeals did not pertain to the issue of lease rent payable, if any, by the corporation in relation to the formerly leased land, the Supreme Court’s May 29, 2026 order had recorded that lease rent of ₹4,655 crore “remain to be recovered” by the state government from the corporation.

The company said it subsequently filed Interlocutory Application seeking recall and expunging of the observations.

Supreme Court order

The Bombay Burmah Trading Corporation said its application was filed on the grounds that the civil appeals did not concern lease rent and that no notice, demand or computation of lease rent had been issued or served on the corporation.

The company also said that it had not been provided a hearing or an opportunity to object to the alleged lease rent amount.

According to the company, the Supreme Court’s August 19 order noted that the amount of ₹4,655.24 crore had neither been the subject matter of a notice served upon the corporation nor finally determined after providing the corporation an opportunity of hearing.

The court consequently recalled the observations in paragraph 59 of the May 29, 2026 order to the extent that they referred to the lease rent liability of the Bombay Burmah Trading Corporation.

The Bombay Burmah Trading Corporation said it will continue to take all necessary steps in the matter and keep stakeholders appropriately informed of any material developments.

Published on August 27, 2026